/EINPresswire.com/ -- MONTREAL, QUEBEC--(Marketwired - May 26, 2017) - Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") (TSX VENTURE:GAZ.UN) today announced its results for the quarter ended March 31^st, 2017 and a distribution of 0.45¢ per unit to unitholders of record on June 16^th, 2017 and payable on June 30^th, 2017.

For the quarter ended March 31^st, 2017, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 0.86¢ compared to 0.58¢ per unit for the quarter ended March 31^st, 2016, an increase of 49%. Recurring FFO was $509,113, an increase of 90% ($268,236 in Q1 2016). For Q1 2017, During Q1 2017 the Trust's property rental income was $969,635 compared to $601,740 in Q1 2016, an increase of 61%. NOI (Net operating Income) was $781,131 compared to $662,469 in Q1 2016, an increase of 18%. Fronsac recorded a net income attributable to unitholders of $1,840,152, or 3.1¢ per unit, compared to net income of $1,528,631, or 3.3¢ per unit, in Q1 2016.

Jason Parravano President and CEO said: "Q1 2017 was another great quarter for Fronsac. We continued our expansion plans with our first joint venture with Odacité Development. Subsequent to the end of the quarter we closed another $5,000,000 round of financing which will allow us to further pursue our growth initiatives."

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended March 31^st, 2017 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended March 31^st, 2017 and March 31^st, 2016.

SUMMARY OF SELECTED ANNUAL INFORMATION
	3 months
Periods ended March 31	2017	2016	Change		%
Financial info
Property rental income	969,635	601,740	367,895		61	%
Total revenue	969,635	751,740	217,895		29	%
NOI (1)	781,131	662,469	118,662		18	%
FFO (1)	509,113	418,236	90,877		22	%
Recurring FFO (1)	509,113	268,236	240,877		90	%
AFFO (1)	500,268	384,397	115,871		30	%
EBITDA (1)	690,074	591,702	98,372		17	%
Investment properties (2)	50,873,143	34,808,863	16,064,280		46	%
Total assets	50,318,833	35,319,808	14,999,025		42	%
Total mortgage/loans/long term debt (3)	24,991,267	17,878,692	7,112,575		40	%
Total exchangeable preferred units	956,072	916,457	39,615		4	%
Total convertible debentures	253,259	251,895	1,364		1	%
Total equity	23,022,113	15,490,110	7,532,003		49	%
Weighted average units o/s - basic	59,269,263	46,378,751	12,890,512		28	%
Amounts on a per unit basis
FFO	0.0086	0.0090	(0.0004	)	(5	%)
Recurring FFO	0.0086	0.0058	0.0028		49	%
AFFO	0.0084	0.0083	0.0002		2	%
Distributions	0.0045	0.0039	0.0006		16	%

(1)	Non-IFRS financial measures
(2)	Includes value of investment properties owned through joint ventures
(3)	Excludes convertible debentures and exchangeable preferred units

RECONCILIATION OF NET INCOME TO FFO
		3 months
Periods ended March 31		2017		2016		Change
Net income (loss) attributable to unitholders		1,840,152		1,528,631		311,521
Change in value of investment properties		(1,334,751	)	(1,090,184	)	(244,567	)
Change in value of investment properties in joint ventures		(31,140	)	(27,984	)	(3,156	)
Unit based compensation		28,475		-		28,475
Change in liability component of exchangeable preferred units		14,352		13,443		909
Change in fair value of derivative financial instruments		(6,180	)	(4,915	)	(1,265	)
Change in fair value of other financial components		(1,795	)	(755	)	(1,040	)
Income taxes		-		-		-
FFO(1) - basic		509,113		418,236		22	%
FFO per unit - basic		0.0086		0.0090		(5	%)
Distributions paid on exchangeable units (if dilutive)		13,897		11,967		1,930
FFO - diluted		523,010		430,203		22	%
FFO per unit - diluted		0.0084		0.0087		(4	%)
Recurring FFO - basic		509,113		268,236		90	%
Recurring FFO per unit - basic		0.0086		0.0058		49	%
Distributions		266,847		179,718		87,129
Distributions per unit		0.0045		0.0039		16	%
FFO - basic after distributions		0.0041		0.0051		(0.0011	)
Recurring FFO - basic after distribution		0.0041		0.0019		0.0022
Distributions as a % of
	FFO - basic	52	%	43	%	9	%
Distributions as a % of
	Recurring FFO - basic	52	%	67	%	(15	%)
Weighted avg. units o/s
	Basic	59,269,263		46,378,751		12,890,512
	Diluted	62,357,463		49,466,951		12,890,512

(1)	FFO is a Non-IFRS financial measure

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties situated along highways or frequently travelled routes, rented to strong tenants under long term, management free and net leases. These properties are typically occupied by tenants within the following sectors; (1) Fast food chains, (2) Major oil/gas companies and (3) Convenience store chains.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provide) accepts any responsibility for the adequacy or accuracy of this release.

The March 31^st, 2017 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com